State RegulationsCO specificDifficulty 2/5
Under what condition does conduct constitute an unfair claim settlement practice violation under C.R.S. § 10-3-1104(1)(h)?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
C.R.S. § 10-3-1104(1)(h) reaches claim-handling conduct that is committed willfully or with such frequency as to indicate a general business practice. Either pathway — deliberate misconduct or a repeated pattern — allows the Colorado Commissioner of Insurance to proceed against the insurer for unfair claim settlement practices.
Why the other options are wrong
- A) No criminal conviction is a prerequisite; the Commissioner acts through administrative enforcement.
- B) An isolated, non-willful act is not enough; the statute requires willfulness or a frequency indicating a general business practice.
- D) The trigger is the insurer's own conduct, not whether the policyholder sued and won.
Memory hook
Willful once, or sloppy often — either way it counts.